48218-007: Support for Value Chain Development Under the Nepal Agriculture Development Strategy | Asian Development Bank

Nepal: Support for Value Chain Development Under the Nepal Agriculture Development Strategy

Sovereign (Public) Project | 48218-007 Status: Active

The small-scale TA will conduct scoping of the proposed loan, Nepal: Targeted Value Chain Development Project (TVCDP), expected to consist of three major subprojects: (i) value chain development along selected geographic corridors and their commodities;(ii) organizational development of the provincial and municipal governments for the agriculture sector; and (iii) improved access to finance by agribusinesses. The small-scale TA will focus on the first two subprojects and provide inputs to the formulation of the TVCDP concept paper.

Project Details

Project Officer
Sunayama, Sonoko South Asia Department Request for information
Country
  • Nepal
Sector
  • Agriculture, natural resources and rural development
 
Project Name Support for Value Chain Development Under the Nepal Agriculture Development Strategy
Project Number 48218-007
Country Nepal
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9444-NEP: Support for Value Chain Development under the Nepal Agriculture Development Strategy
Technical Assistance Special Fund US$ 225,000.00
TA: Support for Value Chain Development Under the Nepal Agriculture Development Strategy
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agro-industry, marketing, and trade - Livestock - Rural market infrastructure

Gender Equity and Mainstreaming Some gender elements
Description The small-scale TA will conduct scoping of the proposed loan, Nepal: Targeted Value Chain Development Project (TVCDP), expected to consist of three major subprojects: (i) value chain development along selected geographic corridors and their commodities;(ii) organizational development of the provincial and municipal governments for the agriculture sector; and (iii) improved access to finance by agribusinesses. The small-scale TA will focus on the first two subprojects and provide inputs to the formulation of the TVCDP concept paper.
Project Rationale and Linkage to Country/Regional Strategy

ADB approved in July 2014 the concept paper for Nepal: Agriculture Sector Development Program (ASDP) for the total investment amount of $160 million, of which $40 million would be funded by the ADB, and the remainder by the government and other development partners. In the same month, a project preparatory TA was approved to develop a project design and conduct a feasibility study for the three ASDP components of: (i) rural road improvement; (ii) investments in markets and value chain development; and (iii) institutional and policy reforms to implement the national sector strategy. Ensuing consultations with the government on the project preparatory TA findings and the ASDP scope resulted in the following changes in early 2017:

(i) The financing modality of the ASDP will be changed from a sector development program to a stand-alone project loan, in view of the governments decision to allocate its own resources to finance ADS-related policy reforms (the third component).

(ii) The ASDP will be split into two stand-alone projects: Rural Connectivity Improvement Project (48218-003) for the first component, and Targeted Value Chain Development Project (TVCDP) for the second component.

Accordingly, TVCDP is included in the country operations business plan (COBP), 2018-2020 for Nepal for Board consideration in for $70 million as ADBs financing, together with a piggy-backed transaction TA to support project implementation.

The TVCDP concept paper is required to be reformulated for approval in 2018. The revised concept paper will not only integrate updated analyses on the corridors and commodity value chains but also adequately ensure complementarity with other major government-led, ADB-financed, and development partner-supported agriculture and rural connectivity initiatives which have emerged since the ASDP concept approval. The small-scale knowledge and support TA for research and development has become necessary to achieve the objectives of redesigning the TVCDP project scope, and revising the project concept in accordance with the new loan processing schedule.

Impact Prosperous commercialization achieved in Nepal's agriculture sector.
Project Outcome
Description of Outcome A well-informed concept on Targeted Value Chain Development Project prepared.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Geographic corridors with commodities and their markets identified.

Preliminary analysis of the Targeted Value Chain Development Project completed.

Terms of Reference for detailed program design developed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will provide expertise in (i) agribusiness and value chain, (ii) agricultural economics, (iii) agricultural trade and standards, (iv) marketing and business development, (v) agricultural sciences, (vi) rural infrastructure, (vii) economics/finance, and (viii) governance and institutional development. A total of 14.5 person-months of consulting services will be provided, of which 6.5 person-months will be international and 8.0 person-months will be national.
Procurement N/A
Responsible ADB Officer Sunayama, Sonoko
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Ministry of Agricultural Development
Singha Durbar,
Kathmandu,
Nepal
Timetable
Concept Clearance -
Fact Finding 06 Nov 2017 to 12 Nov 2017
MRM -
Approval 05 Dec 2017
Last Review Mission -
Last PDS Update 07 Dec 2017

TA 9444-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Dec 2017 - 05 Dec 2017 31 Jan 2019 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 05 Dec 2017 101,915.78

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Related Publications

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